Businesses come in many shapes and sizes – from one-person start-ups to multi-level corporations. Each type has its own costs and benefits, but if you are the owner of a general partnership or sole proprietorship your personal assets remain unprotected. As discussed at www.reichertlegal.com, it is important to limit your liability as a company.
As a general partner, or sole-proprietor of a small business you remain personally liable for your company – which leaves your personal possessions open to creditors who may seek a claim against your business. So what can a business owner do to protect their own assets – their car, home, bank account, and more?
Incorporating your business as an S-Corporation offers limited liability protection and prevents your personal assets from being seized in case the business doesn’t do well, or incurs a debt. In addition to this protection S-Corps ensure the safety and continuity in case of an owner or partner death – like all corporations S-Corps continue perpetually.
In addition, small businesses formed as an S-Corp are taxed more closely to partnerships than businesses incorporated under the more-common C-Corp structure. Where C-Corps have their income taxed twice, S-Corps are taxed using “pass-through taxation”. This means the profits are taxed only at the shareholder level, instead of being taxed again at the corporate level.
Forming an S-Corp is the ideal solution for many small business owners looking to form a business while protecting themselves in the process.
For a free, confidential conversation to discuss this and other business law matters, including business formation legal services, contact business attorney Stephen J. Reichert at 410-299-4959, firstname.lastname@example.org or by clicking here. You can learn more about Stephen and his legal background here.
Day, evening and weekend appointments are available in office, at your residence or via phone or video conferencing.
Stephen looks forward to assisting you with your business law needs.